7-Step Guide to Selling your Home

Selling a home has become more complex - new seller disclosure statements, longer and more tedious forms and a range of environmental concerns have all emerged in the past decade. In other words, home selling is part art, part science, part marketing and part negotiation. 

Here is a simple (I hope!) 7-Step guide to selling your home:

1.      Preparing the Home
Your goal is to showcase your home to attract as many buyers as possible. It should look clean and inviting, maximizing space and highlighting the best features. Look at your home through the eyes of a buyer. Having lived in your home for a while, you tend to be blind to flaws, minor repairs and wear-and-tear areas of your home. Determine what needs to be cleaned, painted, repaired and tossed out. Cosmetic improvements like paint, landscaping, etc help a home show better and are good investments. Mechanical repairs that ensure all systems and appliances are in good working condition are a must to get top price.

2.      Choosing a REALTOR®

In the maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. A REALTOR® is a professional and member of the National Association of REALTORS®, an organization that upholds a strict code of ethics.

When your REALTOR® prepares a marketing plan and marketing materials, do provide information about community amenities, schools and neighborhood attractions.

3.      Setting the Sale Price of your Home

A home may have different prices - there’s the price owners would like to get and the price a buyer is willing to pay. Several factors will determine how much you can get for your home - market conditions, interest rates, supply and demand, and your urgency to sell and relocate. Be realistic.

Your REALTOR® will prepare a document showing you net proceeds at different sales prices that can make it easier to understand the value of different offers.

4.    Showing your home to buyers

Your REALTOR® will implement a marketing plan, but here is how you can help:

• Keep your home as clean, neat and odor-free as possible while your home is on the market.
• Make your home as available as possible to buyers though at times it may be inconvenient.
• Leave the house when buyers are there, since studies have shown that buyers linger and look more carefully when the homeowners aren’t present.
• Lock up your pets or take them away during showings. 

5.      Negotiating the Deal

Perhaps the most complex moment in the sales process is when you get an offer for your home. In an ideal world, the  buyers would have offered you full price or more with perfect terms for the sale. However, in reality, the buyers will probably ask for closing costs, a home warranty, HOA fees, appliances and more. You will need to negotiate the offer.

 

As a seller, you have the options of accepting the offer as is, declining the offer, or making a counteroffer. Keep in mind that you will need to compromise on some aspect of your home sale.

Here are some questions you need to ask:

• Is the buyer qualified for a loan?
• How close is the offer to your asking price?
• Will your home appraise for the contract price?
• How large is the earnest money deposit that accompanied the offer?
•  Has the buyer asked for assistance with closing costs?
•  Has the buyer asked you to make repairs or to give a credit for home improvements?
•  Is the requested settlement date appropriate for your needs?

 

If you’re not immediately satisfied with the offer or are uncertain about whether to accept it, consider your options:

• Are there other offers?
• Can you wait for more offers to come in?
• How will you handle it if no other offers come in after a particular deadline?

 

6.    From contract to Closing

There are 3 things that happen more or less simultaneously:
        i.          The buyer performs due diligence that includes home inspection, termite and HVAC inspections.

- Based on the results, there may be one more round of negotiations to address any problems that may show up in these reports.

 

      ii.          The buyer’s lender processes the loan that includes an appraisal.

- If the appraisal comes in lower than the sales price, you may have to lower the sales price or the buyer may have to come up with a larger down payment.

- Underwriters are very cautious these days and may detect an irregularity that may delay closing, or worse deny the buyer’s loan and cause the cancellation of the contract.

     iii.          The buyer’s attorney orders a title search and prepares closing documents.

- In some cases, there may be a cloud on the title – it may be a small amount like a mechanic’s lien, but that will have to be cleared before closing. This may also cause delays.

- The attorney will make sure that all conditions regarding inspections have been met, and that other contingencies have been satisfied.

7.    Planning your Move

Some actions that you took before listing your home will actually help your move. For example, cleaning and clearing you did – closets, attics and garages - means you have less to pack.

The move: Depending on where you are moving, you may need professional movers or you may opt to do it yourself. Stock up on boxes, packing materials, tape and markers.  

Prepare a Checklist of essentials: Money (cash and credit), Medicines, address books and phone numbers. For moving long distances, you may also need toys and books for children.

With input from Realtor Magazine

 ​Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

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